According to a new report from Yardi Matrix -- in perpetually expensive Manhattan - residential rents are falling due to a rapid increase in rental development in 2018. With a new cycle peak for inventory, rents there, as in much of the nation, will likely maintain a trend of moderation.
With a multifamily pipeline of more than 10,000 units underway and an additional 27,000 in the planning and permitting stages, Manhattan is likely to maintain its fast-paced inventory expansion. "Multifamily is growing and evolving in submarkets such as Hells Kitchen, East Harlem, the Garment District and the Downtown, while an entire neighborhood is springing up in Hudson Yards. Meanwhile, rents in the Lifestyle segment continue to slide," said Paul Fiorilla, Editorial Director for Yardi Matrix.
Competition from new deliveries in the boroughs, especially Queens and Brooklyn, also contribute to Manhattan's flattening rent growth, he added. "As a result, while Manhattan is a dynamic market that remains in high demand as a place to live and do business, we expect rent growth to remain weak, even as the underlying economy and demand remain strong." Yardi Matrix projects that
This week Amazon announced their final selection for the location of their second headquarters. In a change to the original plan, Amazon decided to split the location of their new headquarters between two cities choosing New York and Northern Virginia.
According to CBRE's Q3 2018 Manhattan retail market report, New York City retail rents continued to drop during the third quarter, but forecasters are optimistic for the impending holiday shopping season.